Download Natural Gas Price Outlook

Natural Gas Price Outlook
The majority of your home heating bill is determined by two main factors: the price of each unit of
natural gas and the amount of gas you use. The price of each unit of gas that you use includes Gas Supply
Charges and Delivery Service Charges. By law, National Fuel cannot make a profit on gas that is purchased and
then sold to its customers. The price the Utility pays for gas is determined by market forces and is passed on to
customers through Gas Supply Charges without mark-up. Delivery Service Charges reflect our cost of service.
These charges are regulated and cannot be increased without state approval.
Colder winter weather causes natural gas use to go up,
“The Utility only
creating higher heating bills. If the upcoming winter is colder,
customers may use more gas to heat their homes, which may
collects the exact
cause their heating bills to go up.
amount of money for Gas Supply Charges
gas that is purchased Gas Supply Charges make up more than half of a typical homebill and reflect the market price of the gas that you use,
for our customers, heating
the pipeline and storage costs associated with the gas purchases
since National Fuel we make for our customers, and any adjustments for the over
or under collection of purchased gas costs from previous years.
cannot make a profit on These adjustments help us ensure that the Utility only collects
the exact amount of money for gas that is purchased for our
that gas, by law.”
customers, since National Fuel cannot make a profit on that gas,
by law. Gas Supply Charges are passed on to our customers
dollar for dollar without a profit or discount.
Delivery Service Charges
National Fuel’s Delivery Service Charges, Based on billed revenues and costs for the 12 months ended Sept. 2013
Pennsylvania
or the cost of delivering safe, reliable
natural gas to you, represent the Utility’s
Interest
cost of doing business. Some of these
3.8%
costs include staffing, offices, equipment,
Earnings
pipeline maintenance, taxes and interest
11.9%
costs primarily for infrastructure financing.
Gas Supply
Delivery Service Charges are regulated
Charges
by and are ultimately determined by the
50%
Taxes
Pennsylvania Public Utility Commission,
4.4%
ensuring that established rates are just
and reasonable. In fact, when comparing
average residential customer bills with
other gas utilities, National Fuel has
consistently provided its customers with
the lowest or one of the lowest bills in
Pennsylvania. Our employees continuously
work hard to keep operating costs down so
that gas bills remain low for our customers. Operating Costs
29.9%